Electric vehicle starting
is having an epic week. A tech stock sell-off, an electric vehicle stock sell-off, new business partnerships and fourth-quarter earnings hit Fisker investors in recent days. It was a lot to take in.
As the dust settles, Wall Street seems more optimistic about Fisker (ticker: FSR) than it did a few days ago.
When Friday arrives, the
home to many high-value tech stocks, it was down more than 5% for the week. That’s because inflationary fears are mounting. Higher inflation means higher interest rates, which hurts the valuations of high-yield stocks more than other stocks.
Many EV stocks are highly valued.
(TSLA) is trading for about 100 times estimated earnings for 2022. Tesla shares have had a tougher time than Nasdaq, dropping nearly 13% through Thursday.
Fisker shares, however, were up 20%. The shares rose nearly 40% after the company announced a new partnership with
(2354, Taiwan), to jointly produce a new Fisker vehicle. That highly successful announcement came on Wednesday.
The company’s fourth-quarter earnings report followed Thursday night. Fisker is not generating sales at the moment, so profits don’t matter too much. Still, it was an opportunity for analysts to ask about recent developments.
“We like the [Foxconn] deal as you diversify Fisker away from his sole reliance on
producing vehicles in Austria, ”Cowen analyst Jeffery Osborne wrote in an investigative report on Friday.
(MGA) is building the Fisker Ocean, scheduled for 2022.
Osborne rates FIsker Buy stock. It raised its target price for the stock on Friday to $ 29 from $ 22. Morgan Stanley analyst Adam Jonas is also listed on Buy. He’s more bullish than Osborne and raised his price target to $ 40 from $ 27. Jonas believes the potential for a mass-market electric vehicle produced with Foxconn is a positive and material change in the company’s outlook.
Raymond James analyst Pavel Molchanov is a bit more cautious. Rate the shares of Fisker Hold. Yours does not have a target price for the shares. Molchanov is wary of the stock because he wants more details from the company on the supply of batteries.
“The ideal result would be a firm multi-year supply contract with a first-tier supplier,” Molchanov wrote in an investigative report on Friday. He also wants more details on the versions of the Fisker Ocean represented by the company’s stock figures of more than 12,000. He notes that the gross profit market orientation for the base Ocean model is 5% to 8%, while the orientation for the Extreme version is 29% to 33%.
Overall, four out of seven, or about 57%, of analysts hedge Fisker Buy-type stocks. The average purchase rating index for the stocks in the
Dow Jones Industrial Average
It is more or less the same.
Fisker shares fell 0.8% to $ 21.41 in early trading on Friday. the
it is down 0.2%.
Write Al Root at [email protected]